Floor Trading

Discussion in 'Trading' started by lagwagid, Nov 14, 2002.

  1. lagwagid


    I would like to hear opinions on the following offer:

    The position is as a traders assistant/clerk for a commodities market maker firm on the floor of the NYBOT . Training lasts between a 18 and 24 months. Salary while training is 35k/year, and I was told that after training, as a trader, avg. income was between 250k-500k a year (dont know is this is BS or not). For the interview, I just spoke with one of the traders, who asked me a bunch of Math questions.. mostly probability questions and some other do-in-your-head computation questions.. Anyone have any insight?
  2. Do they make markets in options or futures?
    How tall are you?
    Is this pit trading?
    Which firm is is?
    Try to find out how many clerks they have had over the past few years that they backed for seats and how many didn't make the cut.

    Also, What is your gender?
  3. Take the offer ...
  4. sammybea


    How could you not take an offer like this? Almost sounds too good to be true.
  5. Tea


    Last I heard (a few years ago), the average gross profit of a futures floor trader was around $500,000.

    The firm that backs you will give you between 30-60% of that amount depending upon your experience. So, the lower end figure they gave you for a new trader sounds about right.

    This assumes that they are happy with you and you are doing everything right.

    Good luck, sounds like a good opportunity.
  6. Well, I will assume it is an options MM group since they quizzed you on Stats. Here is your life for the next year and a half.

    7:30 get in and check statement from clearing firm to make that you are flat (no position)
    7:45 Check statement against option trades(actual cards)
    7.35-Run sheets with newly updated vols
    7.50- Go to floor to do outrades (fix trade problems from previous day)
    8:15 Back to office and update position with any changes that result from mornings outtrades
    8:30 Run several Risk Analyzers for traders when they get in
    8:45 Go back to floor with laptop and get ready for open
    9:05 Traders come in, market opens

    You will be responsible for the following duties throughout the day.

    *Walking into each pit to pick up cards from trades that the traders have executed
    *Check those trades with other firms clerks
    *Time stamp card and send it to the exchange
    *Pick up cards from Futures broker used to hedge deltas
    *Type trade into risk analyzer to generate new derivatives(ie deltas, gamma, theta, vega)
    * print out new option position to give to traders so they can stay flat
    *print out new sheets as vols change throughout day

    Hope that helps you. I'm not sure what this firm trades but if it is the Ag sector, What a cushy job! Trading hours are from 9:05-11:50

    Make sure that you choose the right group. You won't have a second chance to change firms. No option group want anyone they have to unteach another firms methods.
  7. I have insight but can't post it here and you don't get email, so email me if you want.
  8. TSaimoto

    TSaimoto Guest

    Take it

    Not for pay but for networking.
  9. lagwagid


    Make markets in Options..

    Will def try to find out how many clerks they've had..

    They said idea candidate was confident, motivated, have skills exceptional Math skills, ex-athlete, and money hungry..

    Yes, it is Ag sector.. cocoa, coffee, sugar, and cotton.

    Also after you are a trader, firm backs you, and you keep 50% of profits..

    Thanks for the info pythagoras, I really appreciate it. I will be going to the trading floor sometime next week. I'll keep everyone updated. I looked up the firm on the nybot website of listed brokers, and it looks like the real deal..
  10. 50% is an excellent split for options, considering the amount of capital required to hold positions.

    The thing that will be the single most important factor in your success is......what is their training program like?
    How often do they have mock trading sessions? How much time do they give you, after the market closes, to discuss events and strategies or do they hand you a few option books and say
    "Read these a few times".

    Be prepared to be the "whipping boy" for a long time.
    #10     Nov 14, 2002